UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________________

FORM 10-Q

_________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 31, ~~2021~~2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number 0-5286

_________________________

KEWAUNEE SCIENTIFIC CORPORATION

(Exact name of registrant as specified in its charter)

_________________________


Delaware						38-0715562
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)

2700 West Front Street Statesville, North Carolina						28677-2927
(Address of principal executive offices)						(Zip Code)

Registrant's telephone number, including area code: (704) 873-7202

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class Trading Symbol(s) Name of Exchange on which registered

Common Stock, $2.50 par value KEQU NASDAQ Global Market

_________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of December ~~13, 2021,~~6, 2022, the registrant had outstanding ~~2,789,873~~2,830,200 shares of Common Stock.

KEWAUNEE SCIENTIFIC CORPORATION

INDEX TO FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, ~~2021~~2022


		Page Number
PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements
	Condensed Consolidated Statements of Operations (unaudited) – Three and Six Months Ended October 31, ~~2021~~2022 and ~~2020~~2021	1
	Condensed Consolidated Statements of Comprehensive Loss (unaudited) – Three and Six Months Ended October 31, ~~2021~~2022 and ~~2020~~2021	2
	Condensed Consolidated Statements of Stockholders' Equity (unaudited) – Three and Six Months Ended October 31, ~~2021~~2022 and ~~2020~~2021	3
	Condensed Consolidated Balance Sheets – October 31, ~~2021~~2022 (unaudited) and April 30, ~~2021~~2022	4
	Condensed Consolidated Statements of Cash Flows (unaudited) –Six Months Ended October 31, ~~2021~~2022 and ~~2020~~2021	5
	Notes to Condensed Consolidated Financial Statements (unaudited)	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	14
Item 4.	Controls and Procedures	14

PART II. OTHER INFORMATION
Item 1A.	Risk Factors	16
Item 6.	Exhibits	16
SIGNATURES		17

Part 1. Financial Information

Item 1. Condensed Consolidated Financial Statements

~~-Kewaunee~~Kewaunee Scientific Corporation

Condensed Consolidated Statements of Operations

(Unaudited)

($ and shares in thousands, except per share amounts)


		Three Months Ended October 31,				Six Months Ended October 31,					Three Months Ended October 31,				Six Months Ended October 31,
		2021		2020		2021		2020			2022		2021		2022		2021
Net sales	Net sales	$	39,031	$	39,000	$	78,524	$	75,423	Net sales	$	54,564	$	39,031	$	104,687	$	78,524
Cost of products sold	Cost of products sold	35,434		32,605		69,253		63,147		Cost of products sold	45,863		35,434		89,790		69,253
Gross profit	Gross profit	3,597		6,395		9,271		12,276		Gross profit	8,701		3,597		14,897		9,271
Operating expenses	Operating expenses	6,487		6,406		13,252		12,563		Operating expenses	7,946		6,487		14,538		13,252
Operating loss		(2,890)		(11)		(3,981)		(287)
Pension income (expense)		89		(289)		178		(577)
Operating profit (loss)										Operating profit (loss)	755		(2,890)		359		(3,981)
Pension (expense) income										Pension (expense) income	(8)		89		(35)		178
Other income, net	Other income, net	46		66		98		120		Other income, net	79		46		546		98
Interest expense	Interest expense	(132)		(128)		(238)		(205)		Interest expense	(370)		(132)		(754)		(238)
Loss before income taxes		(2,887)		(362)		(3,943)		(949)
Income tax expense (benefit)		195		(197)		446		(176)
Profit (Loss) before income taxes										Profit (Loss) before income taxes	456		(2,887)		116		(3,943)
Income tax expense										Income tax expense	570		195		949		446
Net loss	Net loss	(3,082)		(165)		(4,389)		(773)		Net loss	(114)		(3,082)		(833)		(4,389)
Less: Net earnings attributable to the non-controlling interest	Less: Net earnings attributable to the non-controlling interest	18		15		56		5		Less: Net earnings attributable to the non-controlling interest	129		18		157		56
Net loss attributable to Kewaunee Scientific Corporation	Net loss attributable to Kewaunee Scientific Corporation	$	(3,100)	$	(180)	$	(4,445)	$	(778)	Net loss attributable to Kewaunee Scientific Corporation	$	(243)	$	(3,100)	$	(990)	$	(4,445)

Net loss per share attributable to Kewaunee Scientific Corporation stockholders	Net loss per share attributable to Kewaunee Scientific Corporation stockholders									Net loss per share attributable to Kewaunee Scientific Corporation stockholders
Basic	Basic	$	(1.11)	$	(0.07)	$	(1.60)	$	(0.28)	Basic	$	(0.09)	$	(1.11)	$	(0.35)	$	(1.60)
Diluted	Diluted	$	(1.11)	$	(0.07)	$	(1.60)	$	(0.28)	Diluted	$	(0.09)	$	(1.11)	$	(0.35)	$	(1.60)
Weighted average number of common shares outstanding	Weighted average number of common shares outstanding									Weighted average number of common shares outstanding
Basic	Basic	2,789		2,759		2,783		2,757		Basic	2,830		2,789		2,819		2,783
Diluted	Diluted	2,789		2,759		2,783		2,757		Diluted	2,830		2,789		2,819		2,783

See accompanying notes to Condensed Consolidated Financial Statements.

Kewaunee Scientific Corporation

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited)

($ in thousands)


		Three Months Ended October 31,				Six Months Ended October 31,					Three Months Ended October 31,				Six Months Ended October 31,
		2021		2020		2021		2020			2022		2021		2022		2021
Net loss	Net loss	$	(3,082)	$	(165)	$	(4,389)	$	(773)	Net loss	$	(114)	$	(3,082)	$	(833)	$	(4,389)
Other comprehensive loss, net of tax:	Other comprehensive loss, net of tax:									Other comprehensive loss, net of tax:
Foreign currency translation adjustments	Foreign currency translation adjustments	(83)		(35)		(159)		(48)		Foreign currency translation adjustments	(237)		(83)		(461)		(159)
Other comprehensive loss	Other comprehensive loss	(83)		(35)		(159)		(48)		Other comprehensive loss	(237)		(83)		(461)		(159)
Comprehensive loss, net of tax	Comprehensive loss, net of tax	(3,165)		(200)		(4,548)		(821)		Comprehensive loss, net of tax	(351)		(3,165)		(1,294)		(4,548)
Less: Comprehensive income attributable to the non-controlling interest	Less: Comprehensive income attributable to the non-controlling interest	18		15		56		5		Less: Comprehensive income attributable to the non-controlling interest	129		18		157		56
Comprehensive loss attributable to Kewaunee Scientific Corporation	Comprehensive loss attributable to Kewaunee Scientific Corporation	$	(3,183)	$	(215)	$	(4,604)	$	(826)	Comprehensive loss attributable to Kewaunee Scientific Corporation	$	(480)	$	(3,183)	$	(1,451)	$	(4,604)

See accompanying notes to Condensed Consolidated Financial Statements.

Kewaunee Scientific Corporation

Condensed Consolidated Statements of Stockholders' Equity

(Unaudited)

($ in thousands, except per share amounts)


		Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Kewaunee Scientific Corporation Stockholders' Equity			Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Kewaunee Scientific Corporation Stockholders' Equity
Balance at April 30, 2021		$	6,915	$	3,807	$	(53)	$	34,149	$	(3,577)	$	41,241
Balance at April 30, 2022														Balance at April 30, 2022	$	6,983	$	4,483	$	(53)	$	28,023	$	(3,742)	$	35,694
Net loss attributable to Kewaunee Scientific Corporation	Net loss attributable to Kewaunee Scientific Corporation	—		—		—		(1,345)		—		(1,345)		Net loss attributable to Kewaunee Scientific Corporation	—		—		—		(747)		—		(747)
Other comprehensive loss	Other comprehensive loss	—		—		—		—		(76)		(76)		Other comprehensive loss	—		—		—		—		(224)		(224)
Stock-based compensation	Stock-based compensation	67		171		—		—		—		238		Stock-based compensation	97		(134)		—		—		—		(37)
Balance at July 31, 2021		$	6,982	$	3,978	$	(53)	$	32,804	$	(3,653)	$	40,058
Balance at July 31, 2022														Balance at July 31, 2022	$	7,080	$	4,349	$	(53)	$	27,276	$	(3,966)	$	34,686
Net loss attributable to Kewaunee Scientific Corporation	Net loss attributable to Kewaunee Scientific Corporation	—		—		—		(3,100)		—		(3,100)		Net loss attributable to Kewaunee Scientific Corporation	—		—		—		(243)		—		(243)
Other comprehensive loss	Other comprehensive loss	—		—		—		—		(83)		(83)		Other comprehensive loss	—		—		—		—		(237)		(237)
Stock-based compensation	Stock-based compensation	1		129		—		—		—		130		Stock-based compensation	4		192		—		—		—		196
Balance at October 31, 2021		$	6,983	$	4,107	$	(53)	$	29,704	$	(3,736)	$	37,005
Balance at October 31, 2022														Balance at October 31, 2022	$	7,084	$	4,541	$	(53)	$	27,033	$	(4,203)	$	34,402

Common
Stock Additional
Paid-in
Capital Treasury
Stock Retained
Earnings Accumulated
Other
Comprehensive
Loss Total Kewaunee Scientific Corporation Stockholders' Equity
Balance at April 30, 2020 $ 6,885 $ 3,360 $ (53) $ 37,821 $ (9,598) $ 38,415
Net loss attributable to Kewaunee Scientific Corporation — — — (598) — (598)
Other comprehensive loss — — — — (13) (13)
Stock-based compensation 20 78 — — — 98
Balance at July 31, 2020 $ 6,905 $ 3,438 $ (53) $ 37,223 $ (9,611) $ 37,902
Net loss attributable to Kewaunee Scientific Corporation — — — (180) — (180)
Other comprehensive loss — — — — (35) (35)
Stock-based compensation — 143 — — — 143
Balance at October 31, 2020 $ 6,905 $ 3,581 $ (53) $ 37,043 $ (9,646) $ 37,830


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Kewaunee Scientific Corporation Stockholders' Equity
Balance at April 30, 2021	$	6,915	$	3,807	$	(53)	$	34,149	$	(3,577)	$	41,241
Net loss attributable to Kewaunee Scientific Corporation	—		—		—		(1,345)		—		(1,345)
Other comprehensive loss	—		—		—		—		(76)		(76)
Stock-based compensation	67		171		—		—		—		238
Balance at July 31, 2021	$	6,982	$	3,978	$	(53)	$	32,804	$	(3,653)	$	40,058
Net loss attributable to Kewaunee Scientific Corporation	—		—		—		(3,100)		—		(3,100)
Other comprehensive loss	—		—		—		—		(83)		(83)
Stock-based compensation	1		129		—		—		—		130
Balance at October 31, 2021	$	6,983	$	4,107	$	(53)	$	29,704	$	(3,736)	$	37,005

See accompanying notes to Condensed Consolidated Financial Statements.

Kewaunee Scientific Corporation

Condensed Consolidated Balance Sheets

($ and shares in thousands, except per share amounts)


		October 31, 2021		April 30, 2021			October 31, 2022		April 30, 2022
		(Unaudited)					(Unaudited)
Assets	Assets					Assets
Current Assets:	Current Assets:					Current Assets:
Cash and cash equivalents	Cash and cash equivalents	$	4,715	$	5,206	Cash and cash equivalents	$	9,419	$	4,433
Restricted cash	Restricted cash	817		525		Restricted cash	6,898		2,461
Receivables, less allowance; $404; $636, on each respective date		37,069		32,882
Receivables, less allowance; $379; $357, on each respective date						Receivables, less allowance; $379; $357, on each respective date	41,472		41,254
Inventories	Inventories	18,120		16,517		Inventories	24,502		23,796
Income tax receivable		774		955

Note Receivable						Note Receivable	—		13,457
Prepaid expenses and other current assets	Prepaid expenses and other current assets	5,325		4,372		Prepaid expenses and other current assets	8,323		6,164
Total Current Assets	Total Current Assets	66,820		60,457		Total Current Assets	90,614		91,565
Property, plant and equipment, at cost	Property, plant and equipment, at cost	59,744		58,804		Property, plant and equipment, at cost	61,246		60,326
Accumulated depreciation	Accumulated depreciation	(44,229)		(42,822)		Accumulated depreciation	(46,639)		(45,205)
Net Property, Plant and Equipment	Net Property, Plant and Equipment	15,515		15,982		Net Property, Plant and Equipment	14,607		15,121
Right of use assets	Right of use assets	8,454		9,279		Right of use assets	9,908		7,573

Other assets	Other assets	3,504		3,666		Other assets	3,989		4,514
Total Assets	Total Assets	$	94,293	$	89,384	Total Assets	$	119,118	$	118,773

Liabilities and Stockholders' Equity	Liabilities and Stockholders' Equity					Liabilities and Stockholders' Equity
Current Liabilities:	Current Liabilities:					Current Liabilities:
Short-term borrowings	Short-term borrowings	$	13,695	$	6,828	Short-term borrowings	$	—	$	1,588
Current portion of financing liability						Current portion of financing liability	608		575
Current portion of financing lease liability	Current portion of financing lease liability	22		21		Current portion of financing lease liability	74		126
Current portion of operating lease liabilities	Current portion of operating lease liabilities	1,356		1,348		Current portion of operating lease liabilities	1,999		1,319
Accounts payable	Accounts payable	20,228		16,780		Accounts payable	23,050		27,316
Employee compensation and amounts withheld	Employee compensation and amounts withheld	4,084		4,726		Employee compensation and amounts withheld	4,309		4,504
Deferred revenue	Deferred revenue	3,052		3,123		Deferred revenue	11,398		3,529
Other accrued expenses	Other accrued expenses	1,334		1,355		Other accrued expenses	1,420		3,336
Total Current Liabilities	Total Current Liabilities	43,771		34,181		Total Current Liabilities	42,858		42,293
Long-term portion of financing liability						Long-term portion of financing liability	28,459		28,775
Long-term portion of financing lease liability	Long-term portion of financing lease liability	80		91		Long-term portion of financing lease liability	219		228
Long-term portion of operating lease liabilities	Long-term portion of operating lease liabilities	7,031		7,860		Long-term portion of operating lease liabilities	7,746		6,179
Accrued pension and deferred compensation costs	Accrued pension and deferred compensation costs	4,563		4,652		Accrued pension and deferred compensation costs	3,924		4,159
Deferred income taxes	Deferred income taxes	380		307		Deferred income taxes	406		428
Other non-current liabilities	Other non-current liabilities	1,165		806		Other non-current liabilities	497		531
Total Liabilities	Total Liabilities	56,990		47,897		Total Liabilities	84,109		82,593
Commitments and Contingencies	Commitments and Contingencies	0		0		Commitments and Contingencies
Stockholders' Equity:	Stockholders' Equity:					Stockholders' Equity:
Common stock, $2.50 par value, Authorized – 5,000 shares; Issued – 2,793 shares; 2,766 shares; – Outstanding – 2,790 shares; 2,763 shares, on each respective date		6,983		6,915
Common stock, $2.50 par value, Authorized – 5,000 shares; Issued – 2,833 shares; 2,793 shares; – Outstanding – 2,830 shares; 2,790 shares, on each respective date						Common stock, $2.50 par value, Authorized – 5,000 shares; Issued – 2,833 shares; 2,793 shares; – Outstanding – 2,830 shares; 2,790 shares, on each respective date	7,084		6,983
Additional paid-in-capital	Additional paid-in-capital	4,107		3,807		Additional paid-in-capital	4,541		4,483
Retained earnings	Retained earnings	29,704		34,149		Retained earnings	27,033		28,023
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(3,736)		(3,577)		Accumulated other comprehensive loss	(4,203)		(3,742)
Common stock in treasury, at cost, 3 shares, on each respective date	Common stock in treasury, at cost, 3 shares, on each respective date	(53)		(53)		Common stock in treasury, at cost, 3 shares, on each respective date	(53)		(53)
Total Kewaunee Scientific Corporation Stockholders' Equity	Total Kewaunee Scientific Corporation Stockholders' Equity	37,005		41,241		Total Kewaunee Scientific Corporation Stockholders' Equity	34,402		35,694
Non-controlling interest	Non-controlling interest	298		246		Non-controlling interest	607		486
Total Stockholders' Equity	Total Stockholders' Equity	37,303		41,487		Total Stockholders' Equity	35,009		36,180
Total Liabilities and Stockholders' Equity	Total Liabilities and Stockholders' Equity	$	94,293	$	89,384	Total Liabilities and Stockholders' Equity	$	119,118	$	118,773

See accompanying notes to Condensed Consolidated Financial Statements.

Kewaunee Scientific Corporation

Condensed Consolidated Statements of Cash Flows

(Unaudited)

($ in thousands)


		Six Months Ended October 31,					Six Months Ended October 31,
		2021		2020			2022		2021
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net loss	Net loss	$	(4,389)	$	(773)	Net loss	$	(833)	$	(4,389)
Adjustments to reconcile net loss to net cash used in operating activities:	Adjustments to reconcile net loss to net cash used in operating activities:					Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	Depreciation	1,396		1,346		Depreciation	1,433		1,396
Bad debt provision	Bad debt provision	(2)		93		Bad debt provision	(8)		(2)
Stock-based compensation expense	Stock-based compensation expense	366		256		Stock-based compensation expense	368		366
Deferred income taxes	Deferred income taxes	72		257		Deferred income taxes	(22)		72
Change in assets and liabilities:	Change in assets and liabilities:					Change in assets and liabilities:
Receivables	Receivables	(2,971)		(4,243)		Receivables	(209)		(2,971)
Inventories	Inventories	(1,603)		(794)		Inventories	(706)		(1,603)
Income tax receivable	Income tax receivable	180		(503)		Income tax receivable	—		180
Accounts payable and other accrued expenses	Accounts payable and other accrued expenses	3,145		4,379		Accounts payable and other accrued expenses	(6,412)		3,145
Deferred revenue	Deferred revenue	(72)		260		Deferred revenue	7,869		(72)
Other, net	Other, net	(2,193)		(794)		Other, net	(2,066)		(2,193)
Net cash used in operating activities	Net cash used in operating activities	(6,071)		(516)		Net cash used in operating activities	(586)		(6,071)
Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:
Capital expenditures	Capital expenditures	(930)		(1,292)		Capital expenditures	(919)		(930)
Net cash used in investing activities	Net cash used in investing activities	(930)		(1,292)		Net cash used in investing activities	(919)		(930)
Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:

Dividends paid to non-controlling interest in subsidiaries		—		(57)

Proceeds from short-term borrowings	Proceeds from short-term borrowings	28,641		37,599		Proceeds from short-term borrowings	4,431		28,641
Repayments on short-term borrowings	Repayments on short-term borrowings	(21,774)		(34,726)		Repayments on short-term borrowings	(6,019)		(21,774)
Proceeds from sale-leaseback financing transaction						Proceeds from sale-leaseback financing transaction	13,456		—
Payments on sale-leaseback financing transaction						Payments on sale-leaseback financing transaction	(282)		—
Payments on long-term lease obligations	Payments on long-term lease obligations	(10)		(9)		Payments on long-term lease obligations	(61)		(10)
Net proceeds from exercise of stock options		—		(15)

Net cash provided by financing activities	Net cash provided by financing activities	6,857		2,792		Net cash provided by financing activities	11,525		6,857
Effect of exchange rate changes on cash, cash equivalents and restricted cash	Effect of exchange rate changes on cash, cash equivalents and restricted cash	(55)		41		Effect of exchange rate changes on cash, cash equivalents and restricted cash	(597)		(55)
(Decrease) increase in cash, cash equivalents and restricted cash		(199)		1,025
Increase (decrease) in cash, cash equivalents and restricted cash						Increase (decrease) in cash, cash equivalents and restricted cash	9,423		(199)
Cash, cash equivalents and restricted cash, beginning of period	Cash, cash equivalents and restricted cash, beginning of period	5,731		5,215		Cash, cash equivalents and restricted cash, beginning of period	6,894		5,731
Cash, cash equivalents and restricted cash, end of period	Cash, cash equivalents and restricted cash, end of period	$	5,532	$	6,240	Cash, cash equivalents and restricted cash, end of period	$	16,317	$	5,532

See accompanying notes to Condensed Consolidated Financial Statements.

Kewaunee Scientific Corporation

Notes to Condensed Consolidated Financial Statements

(unaudited)

A. Financial Information

The unaudited interim Condensed Consolidated Financial Statements of Kewaunee Scientific Corporation (the "Company") have been prepared pursuant to the rules and regulations of the Securities and Exchange ~~Commission (the "Commission").~~Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These interim Condensed Consolidated Financial Statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of these financial statements and should be read in conjunction with the Consolidated Financial Statements and Notes included in the Company's ~~2021~~2022 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. The Condensed Consolidated Balance Sheet as of April 30, ~~2021~~2022 included in this interim period filing has been derived from the audited consolidated financial statements at that date, but does not include all of the information and related notes required by GAAP for complete financial statements.

The preparation of the interim Condensed Consolidated Financial Statements requires management to make certain estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates.

B. Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less. During the periods ended October 31, ~~2021~~2022 and April 30, ~~2021,~~2022, the Company had cash deposits in excess of FDIC insured limits. The Company has not experienced any losses from such deposits. Restricted cash includes bank deposits of subsidiaries used for performance guarantees against customer orders.

The Company includes restricted cash along with the cash balance for presentation in the Condensed Consolidated Statements of Cash Flows. The reconciliation between the Condensed Consolidated Balance Sheet and the Condensed Consolidated Statement of Cash Flows is as follows:


		October 31, 2021		April 30, 2021			October 31, 2022		April 30, 2022
Cash and cash equivalents	Cash and cash equivalents	$	4,715	$	5,206	Cash and cash equivalents	$	9,419	$	4,433
Restricted cash	Restricted cash	817		525		Restricted cash	6,898		2,461
Total cash, cash equivalents and restricted cash	Total cash, cash equivalents and restricted cash	$	5,532	$	5,731	Total cash, cash equivalents and restricted cash	$	16,317	$	6,894

C. Revenue Recognition

The Company recognizes revenue when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. The majority of the Company's revenues are recognized over time as the customer receives control as the Company performs work under a contract. However, a portion of the Company's revenues are recognized at a point-in-time as control is transferred at a distinct point in time per the terms of a contract.

Disaggregated Revenue

A summary of net sales transferred to customers over time and at a point in time for the periods ended October 31, ~~2021~~2022 and October 31, ~~2020~~2021 is as follows (in thousands):


		Three Months Ended													Three Months Ended
		October 31, 2021						October 31, 2020							October 31, 2022						October 31, 2021
		Domestic		International		Total		Domestic		International		Total			Domestic		International		Total		Domestic		International		Total
Over Time	Over Time	$	28,450	$	9,097	$	37,547	$	26,950	$	10,228	$	37,178	Over Time	$	36,374	$	16,573	$	52,947	$	28,450	$	9,097	$	37,547
Point in Time	Point in Time	1,484		—		1,484		1,822		—		1,822		Point in Time	1,617		—		1,617		1,484		—		1,484
Total	Total	$	29,934	$	9,097	$	39,031	$	28,772	$	10,228	$	39,000	Total	$	37,991	$	16,573	$	54,564	$	29,934	$	9,097	$	39,031


		Six Months Ended													Six Months Ended
		October 31, 2021						October 31, 2020							October 31, 2022						October 31, 2021
		Domestic		International		Total		Domestic		International		Total			Domestic		International		Total		Domestic		International		Total
Over Time	Over Time	$	57,102	$	18,927	$	76,029	$	56,030	$	16,593	$	72,623	Over Time	$	71,727	$	29,228	$	100,955	$	57,102	$	18,927	$	76,029
Point in Time	Point in Time	2,495		—		2,495		2,800		—		2,800		Point in Time	3,732		—		3,732		2,495		—		2,495
Total	Total	$	59,597	$	18,927	$	78,524��	$	58,830	$	16,593	$	75,423	Total	$	75,459	$	29,228	$	104,687	$	59,597	$	18,927	$	78,524

Contract Balances

The closing ~~and opening~~ balances of contract assets included ~~$8,102,000~~$12,742,000 in accounts receivable and ~~$1,568,000~~$1,629,000 in other assets at October 31, ~~2021.~~2022. The opening balance of contract assets arising from contracts with customers included ~~$5,716,000~~$9,287,000 in accounts receivable and ~~$1,213,000~~$1,293,000 in other assets at April 30, ~~2021.~~2022. The closing and opening balances of contract liabilities included in deferred revenue arising from contracts with customers were ~~$3,052,000~~$11,398,000 at October 31, ~~2021~~2022 and ~~$3,123,000~~$3,529,000 at April 30, ~~2021.~~2022. The timing of revenue recognition, billings and cash collections results in accounts receivable, unbilled receivables, and deferred revenue which are disclosed in the Condensed Consolidated Balance Sheets and in the Notes to the Condensed Consolidated Financial Statements. In general, the Company receives payments from customers based on a billing schedule established in its contracts. Unbilled receivables represent amounts earned which have not yet been billed in accordance with contractually stated billing terms and are included in receivables on the Condensed Consolidated Balance Sheets. Receivables are recorded when the right to consideration becomes unconditional and the Company has a right to invoice the customer. Deferred revenue relates to payments received in advance of performance under the contract. Deferred revenue is recognized as revenue as (or when) the Company performs under the contract. Approximately 100% of the contract liability balances at April 30, ~~2021~~2022 and October 31, ~~2021~~2022 are expected to be recognized as revenue during the respective succeeding 12 months.

D. Inventories

The Company measures inventory using the first-in, first-out ("FIFO") method at the lower of cost or net realizable value. Inventories consisted of the following (in thousands):


		October 31, 2021		April 30, 2021			October 31, 2022		April 30, 2022
Finished products	Finished products	$	4,541	$	2,988	Finished products	$	4,250	$	4,555
Work in process	Work in process	2,322		1,832		Work in process	3,266		2,893
Raw materials	Raw materials	11,257		11,697		Raw materials	16,986		16,348
Total	Total	$	18,120	$	16,517	Total	$	24,502	$	23,796

The Company's International subsidiaries' inventories were ~~$2,214,000~~$3,224,000 at October 31, ~~2021~~2022 and ~~$2,560,000~~$2,811,000 at April 30, ~~2021~~2022 and are included in the above tables.

E. Fair Value of Financial Instruments

The Company's financial instruments consist primarily of cash and equivalents, mutual funds, and the cash surrender value of life insurance ~~policies, and short-term borrowings.~~policies. The carrying value of these assets and liabilities approximates their fair value. The following tables summarize the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of October 31, ~~2021~~2022 and April 30, ~~2021~~2022 (in thousands):


		October 31, 2021							October 31, 2022
Financial Assets	Financial Assets	Level 1		Level 2		Total		Financial Assets	Level 1		Level 2		Total
Trading securities held in non-qualified compensation plans (1)	Trading securities held in non-qualified compensation plans (1)	$	1,323	$	—	$	1,323	Trading securities held in non-qualified compensation plans (1)	$	979	$	—	$	979
Cash surrender value of life insurance policies (1)	Cash surrender value of life insurance policies (1)	—		1,487		1,487		Cash surrender value of life insurance policies (1)	—		1,317		1,317
Total	Total	$	1,323	$	1,487	$	2,810	Total	$	979	$	1,317	$	2,296
Financial Liabilities	Financial Liabilities							Financial Liabilities
Non-qualified compensation plans (2)	Non-qualified compensation plans (2)	$	—	$	3,258	$	3,258	Non-qualified compensation plans (2)	$	—	$	2,733	$	2,733
Total	Total	$	—	$	3,258	$	3,258	Total	$	—	$	2,733	$	2,733


		April 30, 2021							April 30, 2022
Financial Assets	Financial Assets	Level 1		Level 2		Total		Financial Assets	Level 1		Level 2		Total
Trading securities held in non-qualified compensation plans (1)	Trading securities held in non-qualified compensation plans (1)	$	1,299	$	—	$	1,299	Trading securities held in non-qualified compensation plans (1)	$	1,219	$	—	$	1,219
Cash surrender value of life insurance policies (1)	Cash surrender value of life insurance policies (1)	—		1,458		1,458		Cash surrender value of life insurance policies (1)	—		1,371		1,371
Total	Total	$	1,299	$	1,458	$	2,757	Total	$	1,219	$	1,371	$	2,590
Financial Liabilities	Financial Liabilities							Financial Liabilities
Non-qualified compensation plans (2)	Non-qualified compensation plans (2)	$	—	$	3,169	$	3,169	Non-qualified compensation plans (2)	$	—	$	3,003	$	3,003
Total	Total	$	—	$	3,169	$	3,169	Total	$	—	$	3,003	$	3,003

(1)The Company maintains 2two non-qualified compensation plans which include investment assets in a rabbi trust. These assets consist of marketable securities, which are valued using quoted market prices multiplied by the number of shares owned, and life insurance policies, which are valued at their cash surrender value.

(2)Plan liabilities are equal to the individual participants' account balances and other earned retirement benefits.

F. Long-term Debt and Other Credit Arrangements

At ~~October 31, 2021,~~April 30, 2022, advances of ~~$12.5~~$1.6 million were outstanding under the Company's revolving credit ~~facility, compared to advances of $6.8 million outstanding as of April 30, 2021.~~facility. The Company had standby letters of credit outstanding of ~~$704,000~~$716,000 at ~~October 31, 2021, unchanged from~~ April 30, ~~2021.~~2022. Amounts available under the revolving credit facility were ~~$2.5 million and $7.5~~$2.4 million at ~~October 31, 2021 and~~ April 30, ~~2021, respectively.~~

On July 30, 2021, the Company entered into a Twelfth Amendment to Credit and Security Agreement (the “Amendment”) with Wells Fargo Bank, National Association (the “Bank”). The Amendment made certain changes to the Credit and Security Agreement, dated as of May 6, 2013, as amended (the “Credit Agreement”), between the Company and the Bank, and to the Revolving Line of Credit Note, dated May 6, 2013, made by the Company and payable to the order of the Bank, as amended (the “Revolving Note”). The changes included (i) extending the maturity date under the Credit Agreement and Revolving Note from July 30, 2021 to2022. At April 30, 2022; (ii) removing the minimum EBITDA covenant; (iii) in addition to the existing Minimum Monthly Liquidity requirement as of the end of each calendar month of not less than $2,000,000, adding an additional covenant that the Company will maintain Supplemental Liquidity (as defined in the amended Credit Agreement) as of the first day of each calendar month not less than (a) during the period from August 1, 2021 through December 31, 2021, $1,000,000 and (b) thereafter $1,500,000; and (iv) restating the amended Credit Agreement to reflect all amendments to date.

~~At October 31, 2021 and April 30, 2021,~~2022, the Company was in compliance with all the financial covenants under its revolving credit facility.

On June 27, 2022, the Company terminated the Credit Agreement with Wells Fargo, National Bank. At the time of termination, there were no borrowings under the Credit Agreement, and the Company did not incur any material termination penalties as a result of the termination.

G. Sale-Leaseback Financing Transaction

On December 22, 2021, the Company entered into an Agreement for Purchase and Sale of Real Property with CAI Investments Sub-Series 100 LLC, a Nevada limited liability company (the "Buyer"), for the Company’s headquarters and manufacturing facilities (the "Property") located at 2700 West Front Street in Statesville, North Carolina (the "Sale Agreement").

The Sale Agreement was finalized on March 24, 2022 and coincided with the Company and the Buyer entering into a 20-year lease, effective on such date, between the Company and CAI Investments Medical Products I Master Lessee LLC ("Lessor"), an affiliate of Buyer (the "Lease Agreement"). At the same time, the Buyer and its affiliates formed a new, debt-financed affiliate, CAI Investments Medical Products I, DST ("Trust"), and contributed the Property to the Trust. According to the terms of the contemporaneous lease, the Trust leased the Property to its affiliated Lessor, which in turn sub-leased the Property to the Company (together with the Sale Agreement, the "Sale-Leaseback Arrangement").

The Sale-Leaseback Arrangement is repayable over a 20-year term, with four renewal options of five years each. Under the terms of the Lease Agreement, the Company’s initial basic rent is approximately $158,000 per month, with annual increases of approximately 2% each year of the initial term.

G. ~~Leases~~

InThe Company accounted for the Sale-Leaseback Arrangement as a financing transaction with the Buyer in accordance with ASC 842, "Leases," as the Lease Agreement was determined to be a finance lease. The Company concluded the Lease Agreement met the qualifications to be classified as a finance lease due to the significance of the present value of the lease payments, using a discount rate of 4.75% to reflect the Company’s incremental borrowing rate, compared to the fair value of the leased property as of the lease commencement date. In measuring the lease payments for the present value analysis, the Company elected the practical expedient to combine the lease component (the leased facilities) with the non-lease component (property management provided by the Buyer/Lessor) into a single lease component.

The presence of a finance lease indicates that control of the Property has not transferred to the Buyer/Lessor and, as such, the transaction was deemed a failed sale-leaseback and must be accounted for as a financing arrangement. As a result of this determination, the Company is viewed as having received the sale proceeds from the Buyer/Lessor in the form of a hypothetical loan collateralized by its leased facilities. The hypothetical loan is payable as principal and interest in the form of “lease payments” to the Buyer/Lessor. As such, the Company will not derecognize the Property from its books for accounting purposes until the lease ends. No gain or loss was recognized under GAAP related to the Sale-Leaseback Arrangement.

As of October 31, 2022, the carrying value of the financing liability was $29,067,000, net of $738,000 in debt issuance costs, of which $608,000 was classified as current on the Consolidated Balance Sheet with $28,459,000 classified as long-term. As of April 30, 2022, the carrying value of the financing liability was $29,350,000, net of $768,000 in debt issuance costs, of which $575,000 was classified as current on the Consolidated Balance Sheet with $28,775,000 classified as long-term. The monthly lease payments are split between a reduction of principal and interest expense using the effective interest rate method. Interest expense associated with the financing arrangement was $330,000 and $662,000 for the three and six months ended October 31, 2022, respectively.

The Company will depreciate the building down to zero over the 20-year assumed economic life of the Property so that at the end of the lease term, the remaining carrying amount of the financing liability will equal the carrying amount of the land of $41,000.

Remaining future cash payments related to the financing liability as of October 31, 2022 are as follows:


($ in thousands)
Remainder of 2023	$	948
2024	1,931
2025	1,970
2026	2,009
2027	2,050
Thereafter	35,958
Total Minimum Liability Payments	44,866
Imputed Interest	(15,799)
Total	$	29,067

H. Leases

The Company recognizes lease assets and lease liabilities reflecting the rights and obligations created by operating type leases for real estate and equipment in both the U.S. and internationally and a financing ~~lease~~leases for a truck and IT equipment in the U.S. At October 31, ~~2021~~2022 and April 30, ~~2021,~~2022, right-of-use assets totaled ~~$8,454,000~~$9,908,000 and ~~$9,279,000,~~$7,573,000, respectively. Operating cash paid to settle lease liabilities was ~~$1,006,000~~$1,026,000 and ~~$848,000~~$1,006,000 for the six months ended October 31, ~~2021~~2022 and October 31, ~~2020,~~2021, respectively. The Company's leases have remaining lease terms of up to 89 years. In addition, some of the leases may include options to extend the leases for up to 5 years or options to terminate the leases within 1 year. Operating lease expenses were $900,000 and $1,734,000 for the three and six months ended October 31, 2022, inclusive of period cost for short-term leases, not included in lease liabilities, of $398,000 and $708,000. Operating lease expenses were $707,000 and $1,555,000 for the three and six months ended October 31, 2021, ~~respectively,~~ inclusive of period cost for short-term leases, not included in lease liabilities, of $201,000 and $549,000, respectively. Operating lease expenses were $683,000 and $1,315,000 for the three and six months ended October 31, 2020, respectively, inclusive of period cost for short-term leases, not included in lease liabilities, of $245,000 and $467,000, respectively.$549,000.

At October 31, ~~2021,~~2022, the weighted average remaining lease term for the capitalized operating leases was ~~5.7~~5.5 years and the weighted average discount rate was ~~4.1%~~4.9%. For the financing ~~lease,~~leases, the weighted average remaining lease term was ~~3.8~~3.6 years and the weighted average discount rate was ~~10.0%~~7.0%. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of those lease payments. The Company uses the implicit rate when readily determinable.

Future minimum lease payments under non-cancelable leases as of October 31, ~~2021, excluding the future minimum lease payments for those leases that have not yet commenced as of October 31, 2021,~~2022 were as follows:

Operating Financing
Remainder of fiscal 2022 $ 1,005 $ 16
2023 1,840 32
2024 1,484 32
2025 1,440 32
2026 1,230 12
Thereafter 2,858 —
Total Minimum Lease Payments 9,857 124
Imputed Interest (1,470) (22)
Total $ 8,387 $ 102

As of October 31, 2021, the Company has entered into a new lease that has not yet commenced with future minimum lease payments of $219,000 that are not yet reflected on the Condensed Consolidated Balance Sheets. This lease is expected to commence in the second half of fiscal year 2022 with a lease term of 5 years.


	Operating		Financing

Remainder of fiscal 2023	$	1,213	$	16
2024	2,254		90
2025	2,100		90
2026	1,915		71
2027	1,652		—
Thereafter	2,500		—
Total Minimum Lease Payments	11,634		267
Imputed Interest	(1,889)		(32)
Total	$	9,745	$	235

H.I. Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding during the year. Diluted earnings per share reflects the assumed exercise of outstanding options and the conversion of restricted stock units ("RSUs") under the Company's various stock compensation plans, except when RSUs and options have an antidilutive effect. There were ~~128,704~~94,930 and ~~116,575~~128,704 antidilutive RSUs and options outstanding at October 31, ~~2021~~2022 and October 31, ~~2020,~~2021, respectively. The following is a reconciliation of basic to diluted weighted average common shares outstanding (in thousands):


		Three Months Ended		Six Months Ended			Three Months Ended		Six Months Ended
		October 31, 2021	October 31, 2020	October 31, 2021	October 31, 2020		October 31, 2022	October 31, 2021	October 31, 2022	October 31, 2021
Basic	Basic	2,789	2,759	2,783	2,757	Basic	2,830	2,789	2,819	2,783
Dilutive effect of stock options and RSUs	Dilutive effect of stock options and RSUs	—	—	—	—	Dilutive effect of stock options and RSUs	—	—	—	—
Weighted average common shares outstanding - diluted	Weighted average common shares outstanding - diluted	2,789	2,759	2,783	2,757	Weighted average common shares outstanding - diluted	2,830	2,789	2,819	2,783

I.J. Stock Options and Stock-based Compensation

~~Under ASC 718, "Compensation-Stock Compensation,"~~The Company recognizes compensation costs related to stock options and other stock awards granted by the Company ~~are charged against~~as operating expenses ~~during~~over their vesting period.

In June ~~2021,~~2022, the Company granted ~~5,500~~54,279 RSUs under the 2017 Omnibus Incentive Plan ("2017 Plan"). These RSUs ~~include a service component that vests over a two-year period. The Company also granted 51,471 RSUs under the 2017 Omnibus Incentive Plan in June 2021 that~~ include a service component that vests over a three-year period. The recognized expense is based upon the vesting period for service criteria. The Company recorded stock-based compensation expense during the three and six months ended October 31, ~~2021~~2022 of ~~$131,000~~$196,000 and ~~$325,000,~~$327,000, respectively, with the remaining estimated stock-based compensation expense of ~~$1,148,000~~$1,173,000 to be recorded over the remaining vesting periods. The Company recorded stock-based compensation expense during the three and six months ended October 31, ~~2020~~2021 of ~~$141,000~~$131,000 and ~~$200,000,~~$325,000, respectively. Directors' fees paid with shares of common stock in lieu of cash in accordance with Director compensation guidelines were $41,000 for each of the six month periods ended October 31, ~~2021~~2022 and October 31, ~~2020~~2021 and were also included in the stock-based compensation on the Condensed Consolidated Statements of Cash Flows.

J.K. Income Taxes

Income tax expense of $570,000 and $949,000 was recorded for the three and six months ended October 31, 2022, respectively. Income tax expense of $195,000 and $446,000 was recorded for the three and six months ended October 31, 2021, respectively. ~~Income~~The effective tax ~~benefit of $197,000~~rate was 125.0% and ~~$176,000 was recorded~~818.1% for the three and six months ended October 31, ~~2020,~~2022, respectively. The effective tax ~~rates were~~rate was (6.8)% and (11.3)% for the three and six months ended October 31, 2021, respectively. The ~~effective tax rates were 54.4% and 18.5% for the three and six months ended October 31, 2020, respectively. The~~ change in the effective tax rate for the ~~three- and six-month periods~~period is primarily due to the impact of foreign operations which are taxed at different rates than the U.S. tax rate of 21% and the recording of a valuation allowance against the deferred tax asset which resulted in the elimination of any U.S. income tax benefit.

In August 2019, the Company revoked its indefinite reinvestment of foreign unremitted earnings position in compliance with ASC 740 "Income Taxes" and terminated its indefinite reinvestment of unremitted earnings assertion for the Singapore, China, and Kewaunee Labway India Pvt. Ltd. international subsidiaries. The Company has a deferred tax liability of ~~$860,000~~$1,117,000 and ~~$776,000~~$976,000 for the withholding tax related to Kewaunee Labway India Pvt. Ltd. as of October 31, ~~2021~~2022 and April 30, ~~2021,~~ 2022,

respectively. The Company recorded all deferred tax assets and liabilities related to its outside basis differences in its foreign subsidiaries consistent with ASC 740.

K.L. Defined Benefit Pension Plans

The Company has non-contributory defined benefit pension plans covering substantially all domestic salaried and hourly employees. These plans were amended as of April 30, 2005; no further benefits have been, or will be, earned under the plans, subsequent to the amendment date, and no additional participants will be added to the plans. There were no Company contributions paid to the plans for the three and six months ended October 31, ~~2021~~2022 and October 31, ~~2020.~~2021. The Company assumed an expected long-term rate of return of 7.75% for the periods ended October 31, ~~2021~~2022 and October 31, ~~2020.~~2021.

Pension ~~(income)~~expense / ~~expense~~(income) consisted of the following (in thousands):


		Three Months Ended					Three Months Ended
		October 31, 2021		October 31, 2020			October 31, 2022		October 31, 2021
Service cost	Service cost	$	0	$	0	Service cost	$	—	$	—
Interest cost	Interest cost	177		181		Interest cost	100		177
Expected return on plan assets	Expected return on plan assets	(401)		(321)		Expected return on plan assets	(166)		(401)
Recognition of net loss	Recognition of net loss	135		429		Recognition of net loss	74		135
Net periodic pension (income) expense		$	(89)	$	289
Net periodic pension expense (income)						Net periodic pension expense (income)	$	8	$	(89)

Six Months Ended
October 31, 2021 October 31, 2020
Service cost $ 0 $ 0
Interest cost 354 362
Expected return on plan assets (802) (642)
Recognition of net loss 270 857
Net periodic pension (income) expense $ (178) $ 577


	Six Months Ended
	October 31, 2022		October 31, 2021
Service cost	$	—	$	—
Interest cost	422		354
Expected return on plan assets	(701)		(802)
Recognition of net loss	314		270
Net periodic pension expense (income)	$	35	$	(178)

L.M. Segment Information

The Company's operations are classified into 2two business segments: Domestic and International. The Domestic business segment principally designs, manufactures, and installs scientific and technical furniture, including steel and wood laboratory cabinetry, fume hoods, laminate casework, flexible systems, worksurfaces, workstations, workbenches, and computer enclosures. The International business segment, which consists of the Company's foreign subsidiaries, provides products and services, including facility design, detailed engineering, construction, and project management from the planning stage through testing and commissioning of laboratories. Intersegment transactions are recorded at normal profit margins. All intercompany balances and transactions have been eliminated. Certain corporate expenses shown below have not been allocated to the business segments.

The following tables provide financial information by business segments for the periods ended October 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):


											Domestic Operations		International Operations		Corporate / Eliminations		Total
Three months ended October 31, 2022										Three months ended October 31, 2022
Revenues from external customers										Revenues from external customers	$	37,991	$	16,573	$	—	$	54,564
Intersegment revenues										Intersegment revenues	650		3,335		(3,985)		—
Earnings (loss) before income taxes										Earnings (loss) before income taxes	491		1,856		(1,891)		456
		Domestic Operations		International Operations		Corporate / Eliminations		Total
Three months ended October 31, 2021	Three months ended October 31, 2021									Three months ended October 31, 2021
Revenues from external customers	Revenues from external customers	$	29,934	$	9,097	$	—	$	39,031	Revenues from external customers	$	29,934	$	9,097	$	—	$	39,031
Intersegment revenues	Intersegment revenues	170		571		(741)		—		Intersegment revenues	170		571		(741)		—
Earnings (loss) before income taxes	Earnings (loss) before income taxes	(2,095)		578		(1,370)		(2,887)		Earnings (loss) before income taxes	(2,095)		578		(1,370)		(2,887)

Three months ended October 31, 2020
Revenues from external customers		$	28,772	$	10,228	$	—	$	39,000
Intersegment revenues		601		1,099		(1,700)		—
Earnings (loss) before income taxes		595		786		(1,743)		(362)

Domestic
Operations International
Operations Corporate /
Eliminations Total
Six Months Ended October 31, 2021
Revenues from external customers $ 59,597 $ 18,927 $ — $ 78,524
Intersegment revenues 345 1,136 (1,481) —
Earnings (loss) before income taxes (2,304) 1,242 (2,881) (3,943)
Six Months Ended October 31, 2020
Revenues from external customers $ 58,830 $ 16,593 $ — $ 75,423
Intersegment revenues 1,252 1,910 (3,162) —
Earnings (loss) before income taxes 1,588 921 (3,458) (949)


	Domestic Operations		International Operations		Corporate / Eliminations		Total
Six months ended October 31, 2022
Revenues from external customers	$	75,459	$	29,228	$	—	$	104,687
Intersegment revenues	1,446		4,956		(6,402)		—
Earnings (loss) before income taxes	589		2,950		(3,423)		116

Six months ended October 31, 2021
Revenues from external customers	$	59,597	$	18,927	$	—	$	78,524
Intersegment revenues	345		1,136		(1,481)		—
Earnings (loss) before income taxes	(2,304)		1,242		(2,881)		(3,943)

M.N. New Accounting Standards

In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," which replaces the current incurred loss method used for determining credit losses on financial assets, including trade receivables, with an expected credit loss method. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022. The Company will adopt this standard in fiscal year 2024. The Company does not expect the adoption of this standard to have a significant impact on the Company's consolidated financial position or results of operations.

In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes ("Topic 740"): Simplifying the Accounting for Income Taxes." This update simplifies the accounting for income taxes through certain targeted improvements to various subtopics within Topic 740. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. The Company adopted this standard effective May 1, 2021. The adoption of this standard did not have a significant impact on the Company's consolidated financial position or results of operations.

N. ~~Reclassifications~~

The Company reclassified certain amounts in the Condensed Consolidated Balance Sheet for the period ended April 30, 2021 and the Condensed Consolidated Statements of Cash Flows for the six-month period ended October 31, 2021 to conform to the current period presentation.

O. ~~Subsequent Events~~

On November 5, 2021, the Company experienced a criminal network cyber attack that led to a disruption of its domestic operations, including manufacturing, engineering, administration, and sales operations. As of November 15, 2021 the Company had substantially restored its operations. The Company engaged third party experts, including a cybersecurity firm, to perform a fulsome forensic investigation of the attack; among other things, the cybersecurity firm assessed whether any confidential or sensitive data had been compromised. Based on the results of the investigation to date, the Company does not believe any confidential or sensitive data has been downloaded, stolen from the Company's systems, or otherwise exfiltrated. The Company will continue to evaluate the incident and determine the appropriate actions to take, if any, in light of what is discovered. The investigation is on-going. The Company has insurance coverage against recovery costs and business interruption resulting from cyber-attacks. However, the Company may have incurred, and may incur in the future, expenses and losses related to this attack that are not covered by insurance. The total amount of such expenses or losses cannot be estimated at this time; however, it is likely that the costs related to this event will exhaust the Company's existing insurance coverage related to cyber attacks. While the Company will seek to obtain insurance for losses related to any similar future events, there can be no assurance that such insurance will be available to the Company.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The Company's ~~2021~~2022 Annual Report to Stockholders on Form 10-K contains management's discussion and analysis of the Company's financial condition and results of operations as of and for the year ended April 30, ~~2021.~~2022. The following discussion and analysis describes material changes in the Company's financial condition since April 30, ~~2021.~~2022. The analysis of results of operations compares the three and six months ended October 31, ~~2021~~2022 with the comparable periods of the prior year.

Results of Operations

Sales for the quarter were ~~$39,031,000, relatively flat~~$54,564,000, an increase from sales of ~~$39,000,000~~$39,031,000 in the comparable period of the prior year. Domestic sales for the quarter were ~~$29,934,000,~~$37,991,000, up ~~4.0%~~26.9% from sales of ~~$28,772,000~~$29,934,000 in the comparable period of the prior year. The increase in Domestic sales ~~were favorably impacted by $1,213,000 of raw material surcharges implemented during the most recent quarter.~~was predominantly from higher input costs being rolled into product pricing. International sales for the quarter were ~~$9,097,000, down 11.1%~~$16,573,000, up 82.2% from sales of $10,228,000 in the comparable period of the prior year. International sales decreased when compared to the prior year period due to non-availability of site clearances and billings being delayed until the next quarter coupled with a strong prior year period that benefited from higher billings as reduced COVID-19 related restrictions in markets allowed access to project sites.

Sales for the six months ended October 31, 2021 were $78,524,000, a 4.1% increase from sales of $75,423,000 in the comparable period of the prior year. Domestic sales for the six month period were $59,597,000, up 1.3% from sales of $58,830,000 in the comparable period of the prior year. Domestic sales were favorably impacted by $1,613,000 of raw materials surcharges implemented during the most recent quarter. International sales for the period were $18,927,000, up 14.1% from sales of $16,593,000$9,097,000 in the comparable period of the prior year. International sales increased when compared to the prior year period due to ~~strong demand~~the commencement of delivery of large projects booked in the ~~current year coupled with COVID-19 related restrictions and government mandated shut-downs~~prior fiscal year.

Sales for the six months ended October 31, 2022 were $104,687,000, an increase from sales of $78,524,000 in ~~India that limited access to project sites that significantly impacted~~ the ~~first quarter~~comparable period of the prior year. Domestic sales for the quarter were $75,459,000, up 26.6% from sales of $59,597,000 in the comparable period of the prior year. The increase in Domestic sales was predominantly from higher input costs being rolled into product pricing. International sales for the quarter were $29,228,000, up 54.4% from sales of $18,927,000 in the comparable period of the prior year. International sales increased when compared to the prior year period due to the commencement of delivery of large projects booked in the prior fiscal year.

The Company's order backlog was $157.8 million at October 31, 2022, as compared to $139.7 million at October 31, 2021, ~~as compared to $96.0 million at October 31, 2020,~~ and ~~$114.5~~$173.9 million at April 30, 2021. This is the highest order backlog in the Company's history. The Company's backlog increased significantly due to a large greenfield project located in India awarded to our international subsidiaries.2022.

The gross profit margin for the three months ended October 31, ~~2021~~2022 was ~~9.2%~~15.9% of sales, as compared to ~~16.4%~~9.2% of sales in the comparable quarter of the prior year. The gross profit margin for the six months ended October 31, ~~2021~~2022 was ~~11.8%,~~14.2% of sales, as compared to ~~16.3%~~11.8% of sales in the comparable quarter of the prior year. The ~~decrease~~increase in gross profit margin percentage for the three and six months ended October 31, 2022 is primarily due to higher input costs being rolled into domestic pricing for the current fiscal year as compared to the prior year comparable periods. During the three and six months ended October 31, 2021, ~~is a result of supplier constraints resulting from COVID-19, as well as other supply chain disruptions, that led to~~the Company's gross profit margin percentage was unfavorably impacted by increases in steel, wood, and epoxy resin raw material costs ~~when compared~~that could not be added to ~~the prior year~~existing fixed-price contracts of ~~approximately~~ $2,112,000 and $3,763,000, ~~respectively, net of surcharges implemented.~~respectively.

Operating expenses for the three months ended October 31, ~~2021~~2022 were ~~$6,487,000,~~$7,946,000, or ~~16.6%~~14.6% of sales, as compared to ~~$6,406,000,~~$6,487,000, or ~~16.4%~~16.6% of sales, in the comparable period of the prior year. Operating expenses for the six months ended October 31, ~~2021~~2022 were ~~$13,252,000,~~$14,538,000, or ~~16.9%~~13.9% of sales, as compared to ~~$12,563,000,~~$13,252,000, or ~~16.7%~~16.9% of sales, in the comparable period of the prior year. The increase in operating expenses for the three months ended October 31, ~~2021~~2022 was primarily ~~for~~due to increases ~~related to~~in

consulting and professional fees of $278,000, and increases in international operating expenses of $940,000, partially offset by reductions in administrative wages, benefits, incentive and stock-based compensation of ~~$681,000 partially offset by decreases~~$70,000, marketing expense of ~~$179,000 in marketing~~$62,000, and corporate governance expenses ~~$142,000 in consulting and professional fees, and $288,000~~ of ~~international expenses.~~$36,000. The increase in operating expenses for the six months ended October 31, ~~2021~~2022 was primarily ~~for~~due to increases ~~related to~~in consulting and professional fees of $476,000, and increases in international operating expenses of $1,308,000, partially offset by reductions in administrative wages, benefits,

incentive and stock-based compensation of ~~$863,000~~$700,000, marketing expense of $190,000, and ~~increases in international~~corporate governance expenses of ~~$109,000, partially offset by decreases of $254,000~~$11,000. The increase in ~~marketing~~operating expenses ~~and $149,000 in consulting and professional fees.~~

~~Interest expense, net was $132,000 and $238,000~~ for the three and six months ended October 31, ~~2021,~~2022 also included a one-time charge related to the write-down of a prior year insurance claim in the amount of $260,000. The increase in international operating expenses for the three and six months ended October 31, 2022 is related to the continued sales growth in the International operating segment.

Interest expense, net was $370,000 and $754,000 for the three and six months ended October 31, 2022, as compared to ~~$128,000~~$132,000 and ~~$205,000~~$238,000 for the comparable periods of the prior year. The changes in interest expense were primarily ~~attributable~~due to changes in ~~borrowing levels.~~the levels of bank borrowings and the Sale-Leaseback financing transaction.

The effective income tax ~~rates~~rate for the three and six months ended October 31, 2022 was 125.0% and 818.1%, respectively, as compared to (6.8)% and (11.3)% for the three and six months ended October 31, 2021, ~~were (6.8)% and (11.3)% as compared to 54.4% and 18.5% for the three and six months ended October 31, 2020.~~respectively. Income tax expense of ~~$195,000~~$570,000 and ~~an income tax benefit of $197,000~~$195,000 was recorded for the three months ended October 31, ~~2021~~2022 and ~~2020,~~2021, respectively. Income tax expense of ~~$446,000~~$949,000 and ~~an income tax benefit of $176,000~~$446,000 was recorded for the six months ended October 31, 2022 and 2021, ~~and 2020, respectively. The~~respectively.The change in the effective tax rate for the three and six months ended October 31, ~~2021~~2022 reflects the impact of international operations which are taxed at different rates, combined with no U.S. tax benefit being recorded for the most recent quarter due to the Company's full valuation allowance position. See Note JK, Income Taxes, of the Notes to Condensed Consolidated Financial Statements for additional information.

Non-controlling interests related to the Company's subsidiaries not 100% owned by the Company increased net loss by ~~$18,000~~$129,000 and ~~$56,000~~$157,000 for the three and six months ended October 31, ~~2021, respectively, as~~2022, compared to ~~$15,000~~$18,000 and ~~$5,000~~$56,000 for the comparable periods of the prior year. The change in the net earnings attributable to the non-controlling interest in the current period was due to changes in earnings of the subsidiaries in the related period.

Net loss was ~~$3,100,000,~~$243,000, or ~~$(1.11)~~$(0.09) per diluted share, for the three months ended October 31, ~~2021,~~2022, compared to ~~$180,000,~~$3,100,000, or ~~$(0.07)~~$(1.11) per diluted share, in the prior year period. ~~A net~~Net loss ~~of $4,445,000,~~was $990,000, or ~~$(1.60)~~$(0.35) per diluted share, ~~was reported~~ for the six months ended October 31, ~~2021,~~2022, compared to ~~a net loss of $778,000,~~$4,445,000, or ~~$(0.28)~~$(1.60) per diluted share, in the prior year period.

Liquidity and Capital Resources

~~Historically, the Company's~~Our principal sources of liquidity have historically been funds generated from ~~operations, supplemented as needed by short-term borrowings under the Company's revolving credit facility.~~operating activities. In addition, on March 24, 2022, we executed a Sale-Leaseback financing transaction with respect to our manufacturing and corporate facilities in Statesville, North Carolina to provide additional liquidity. See Note G, Sale-Leaseback Financing Transaction for more information. Additionally, certain machinery and equipment are financed by non-cancellable operating leases. The Company believes that these sources will be sufficient to support ongoing business requirements in the current fiscal year, including capital expenditures.

The Company had working capital of ~~$23,049,000~~$47,756,000 at October 31, ~~2021,~~2022, compared to ~~$26,276,000~~$49,272,000 at April 30, ~~2021.~~2022. The ratio of current assets to current liabilities was ~~1.5-to-1.0~~2.1-to-1.0 at October 31, ~~2021,~~2022, compared to ~~1.8-to-1.0~~2.2-to-1.0 at April 30, ~~2021. The~~2022.

As previously reported in the Company's ~~short-term debt and working capital were significantly impacted by the $3,763,000 of increased raw material costs that~~2022 Annual Report on Form 10-K, the Company was ~~not able to pass along to customers due to~~compliant at April 30, 2022 with all of the ~~fixed price nature of our contracts. At October 31, 2021, advances of $12.5 million were outstanding~~financial covenants under the ~~Company's~~revolving credit ~~facilities, compared to advances~~facility. On June 27, 2022, the Company terminated the Credit Agreement with Wells Fargo, National Bank. At the time of ~~$6.8 million outstanding as of April 30, 2021. The Company had standby letters of credit outstanding of $704,000 at October 31, 2021, unchanged from April 30, 2021. Amounts available~~termination, there were no borrowings under the ~~$15.0 million revolving credit facility were $2.5 million~~Credit Agreement, and ~~$7.5 million at October 31, 2021 and April 30, 2021, respectively.~~the Company did not incur any material termination penalties as a result of the termination. For additional information concerning our credit facility, see Note F, Long-Term Debt and Other Credit Arrangements.

~~As previously reported in the Company's 2021 Annual Report on~~ ~~Form 10-K~~, the Company was compliant at April 30, 2021 with all of the financial covenants under the revolving credit facility. At October 31, 2021, the Company was in compliance with all the financial covenants under its revolving credit facility.

The Company used cash of ~~$6,071,000~~$586,000 during the six months ended October 31, ~~2021~~2022, primarily for ~~operations,~~decreases in accounts payable and other accrued expenses of $6.4 million and increases in ~~receivables of $3.0 million, inventory of $1.6 million~~prepaid expenses and other ~~net~~current assets of $2.2 million, partially offset by an increase in ~~accounts payable and other accrued expenses~~deferred revenue of ~~$3.1~~$7.9 million. The increase in deferred revenue is primarily related to advance payments received for a large international order. During the six months ended October 31, ~~2021,~~2022, the Company used net cash of ~~$930,000~~$919,000 in investing activities, all of which was used for capital expenditures. The Company's financing activities provided cash of ~~$6,857,000~~$11,525,000 during the six months ended October 31, ~~2021,~~2022, primarily from ~~net increases in short-term borrowings~~proceeds of the sale-leaseback financing transaction that was previously recorded as a ~~result of increased raw material costs, as discussed above.~~note receivable at April 30, 2022.

Outlook

The Company continues to actively monitor the COVID-19 pandemic and its impact. Any future developments and effects will be highly uncertain and cannot be predicted, including: the scope and duration of the pandemic; further adverse revenue and net income effects; disruptions to our operations; closure of project sites; ability of suppliers to support our operations; the effectiveness of our work from home arrangements; employee impacts from illness, school closures and other community response measures; and any actions taken by governmental authorities and other third parties in response to the pandemic. The uncertain future development of this crisis could materially and adversely affect our business, operations, operating results, financial condition, liquidity or capital levels. The Company will continue to work to ensure the safety of our people and our ability to serve our customers worldwide.

~~As previously discussed (See~~ ~~Note O~~, ~~Subsequent Events~~), on November 5, 2021, the Company experienced a criminal network cyber attack that led to a disruption of its domestic operations, including manufacturing, engineering, administration, and sales operations. As of November 15, 2021, the Company had substantially restored its operations. While the Company has insurance coverage against recovery costs and business interruption resulting from cyber-attacks, the Company may have incurred, and may incur in the future, expenses and losses related to this attack that are not covered by insurance. The total amount of such expenses or losses cannot be estimated at this time; however, it is likely that the costs related to this event will exhaust the Company's existing insurance coverage related to cyber attacks. While the Company will seek to obtain insurance for losses related to any similar future events, there can be no assurance that such insurance will be available to the Company.

~~In addition, the~~ Company's ability to predict future demand for its products continues to be limited given its role as subcontractor or supplier to dealers for subcontractors. Demand for the Company's products is also dependent upon the number of laboratory construction projects planned and/or current progress in projects already under construction. The Company's earnings are also impacted by fluctuations in prevailing pricing for projects in the laboratory construction marketplace and increased costs of raw materials, including ~~stainless~~ steel, wood, and epoxy resin, and whether the Company ~~is able to~~can increase product prices to customers in amounts that correspond to such increases without materially and adversely affecting sales. Additionally, since prices are normally quoted on a firm basis in the industry, the Company bears the burden of possible increases in labor and material costs between the quotation of an order and delivery of a product.

~~Looking forward,~~The Company continues to improve the quality of the order backlog by delivering a portion of the lower margin direct sales orders and replacing those orders in the backlog with higher margin product orders. This dynamic, as well as the Company’s ability to focus solely on supporting its dealers and distribution channel partners domestically and the continued growth of its International business, positions Kewaunee well as the Company ~~is optimistic about opportunities for growth within existing end-markets. As~~moves through the economy continues to re-open, the Company anticipates that project awards will accelerate and the pace of construction will increase. The Company has been focused on restoring and expanding manufacturing capacity that had been previously reduced due to COVID-19. The Company has also been implementing surcharges on new orders with the goal of aligning revenue to offset the broad based price increases for materials including steel, aluminum, hard woods, and resin products that has impacted the Company's financial performance for the first halfbalance of the fiscal year. ~~The Company expects improved financial performance in the second half of this fiscal year and into fiscal year 2023.~~

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Certain statements ~~included and referenced~~ in this ~~report, including Management's Discussion and Analysis of Financial Condition and Results of Operations,~~document constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). All statements other than statements of historical fact included in this Quarterly Report, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. Such forward-looking statements ~~involve~~are subject to known and unknown risks, uncertainties, assumptions, and other important factors that could significantly impact results or achievements expressed or implied by such forward-looking statements. ~~These~~Such factors, risks, uncertainties and assumptions include, but are not limited ~~to,~~to: competitive and general economic ~~competitive, governmental~~conditions and ~~technological factors affecting our operations, markets, products, services~~the ongoing impact of the COVID-19 pandemic, including disruptions from government mandates, both domestically and ~~prices,~~internationally, as well as ~~prices for certain~~supplier constraints and other supply disruptions; changes in customer demands; technological changes in our operations or in our industry; dependence on customers’ required delivery schedules; risks related to fluctuations in the Company’s operating results from quarter to quarter; risks related to international operations, including foreign currency fluctuations; changes in the legal and regulatory environment; changes in raw materials and ~~energy.~~commodity costs; acts of terrorism, war, governmental action, and natural disasters and other Force Majeure events. The cautionary statements made ~~by us~~ pursuant to the Reform Act herein and elsewhere by us should not be construed as exhaustive. We cannot always predict what factors would cause actual results to differ materially from those indicated by the forward-looking statements. Over time, our actual results, performance, or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such differences might be significant and harmful to our stockholders' interest. Many important factors that could cause such differences are described under the caption "Risk Factors" in Item 1A in the Company's ~~2021~~2022 Annual Report on Form 10-K. In addition, readers are urged to consider statements that include the terms "believes," "belief," "expects," "plans," "objectives," "anticipates," "intends" or the like to be uncertain and forward-looking.10-K, which you should review carefully. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There are no material changes to the disclosures made on this matter in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, ~~2021.~~2022.

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures

An evaluation was performed under the supervision and with the participation of the Company's management, including the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of October 31, ~~2021.~~2022. Based on that evaluation, the Company's management, including the CEO and CFO, concluded that, as of October 31, ~~2021,~~2022, the Company's disclosure controls and procedures were adequate and effective and designed to ensure that all material information required to be filed in this quarterly report is made known to them by others within the Company and its subsidiaries.

~~On November 5, 2021, the Company experienced a criminal network cyber-attack that led to a disruption of its domestic operations. This attack is described in more detail in~~
~~Note O~~, ~~Subsequent Events~~ and elsewhere in this quarterly report. Management is reviewing the matter, including conducting the forensic investigation described elsewhere in this report, and has not yet determined whether there is a related issue with its internal controls.

(b) Changes in internal controls

There was no significant change in the Company's internal control over financial reporting that occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1A. Risk Factors

The business, financial condition and operating results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited to those described in Part I, Item 1A of the Company's ~~2021~~2022 Annual Report on Form 10-K under the heading "Risk Factors," any one or more of which could, directly or indirectly, cause the Company's actual financial condition and operating results to vary materially from its past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in part, could materially and adversely affect the Company's business, financial condition, operating results and stock price. ~~Other than as set forth below, there~~There have been no material changes to the Company's risk factors from those set forth in the Company's Annual Report on Form 10-K for the year ended April 30, ~~2021~~2022 as filed with the SEC on July ~~15, 2021.~~1, 2022.

~~We recently experienced a network cyber-attack that disrupted our domestic operations.~~

On November 5, 2021, the Company experienced a criminal network cyber-attack that led to a disruption of its domestic operations, including manufacturing, engineering, administration, and sales operations. As of November 15, 2021, the Company had substantially restored its operations. The Company has engaged third party experts, including a cybersecurity firm, to perform a fulsome forensic investigation of this attack; among other things, the cybersecurity firm assessed whether any confidential or sensitive data had been compromised. Based on the results of the investigation to date, the Company does not believe any confidential or sensitive data has been downloaded, stolen from the Company's systems, or otherwise exfiltrated. The Company will continue to evaluate the incident and determine the appropriate actions to take, if any, in light of what is discovered. The investigation is ongoing. The Company has insurance coverage against recovery costs and business interruption resulting from cyber-attacks. However, the Company may have incurred, and may incur in the future, expenses and losses related to this attack that are not covered by insurance. The total amount of such expenses or losses cannot be estimated at this time; however, it is likely that the costs related to this event will exhaust the Company's existing insurance coverage related to cyber attacks. While the Company will seek to obtain insurance for losses related to any similar future events, there can be no assurance that such insurance will be available to the Company. Any future such events, particularly if not covered by insurance, could have material adverse effects on the Company's business and/or results of operations.

Item 6. Exhibits


31.1						Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2						Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2						Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS						XBRL Instance Document
101.SCH						XBRL Taxonomy Extension Schema Document
101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						XBRL Taxonomy Extension Label Linkbase Document
101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	KEWAUNEE SCIENTIFIC CORPORATION (Registrant)

Date: December ~~17, 2021~~9, 2022	By	/s/ Donald T. Gardner III
		Donald T. Gardner III
		(As duly authorized officer and Vice President, Finance and Chief Financial Officer)


	Operating		Financing

Remainder of fiscal 2022	$	1,005	$	16
2023	1,840		32
2024	1,484		32
2025	1,440		32
2026	1,230		12
Thereafter	2,858		—
Total Minimum Lease Payments	9,857		124
Imputed Interest	(1,470)		(22)
Total	$	8,387	$	102